if you added more stocks at random to a portfolio which of the followi
If you added more stocks at random to a portfolio, which of the following is the most accurate statement of what would happen to the standard deviation of the portfolio? Please explain. (1) standard deviation of the portfolio would remain constant. (2) standard deviation of the portfolio would decline to somewhere in the vicinity of20%. (3) standard deviation of the portfolio would decline to zero if enough stocks were included.
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